Sub : Permission for Insurance activities by a Stock Broker

This is with regard to representations received by SEBI from stock brokers requesting SEBI permission to act as Insurance Brokers. We have been instructed by SEBI to inform you that Regulations for Insurance Brokers have been notified by the Insurance Regulatory and Development Authority on October 16, 2002.

As per IRDA Regulation 10(1)(iv) relating to “requirements for capital” it has been stipulated that the applicant shall exclusively carry on the business of an insurance broker as licensed under these regulations”. In view of the exclusivity provided in the IRDA regulations for Insurance Brokers, the Stock brokers may thus be unable to act in the capacity of Insurance Brokers.

All the Member/ Dealers are requested to note the stipulation of the IRDA regulation for Insurance Brokers 2002.

Thanking you,

Yours faithfully,

Ajay C Singhvi

Asst. Vice President